FAIR -- Fair and Immediate Relief

Driven by the same values... this plan is a plan to provide immediate relief, spending reforms, and long-term structural changes to New Jersey's property tax.

1. Immediate relief for the hardest hit seniors and middle class taxpayers.
2. Reforms that will limit bureaucratic and administrative spending.
3. Plan to involve the citizens of our state in meaningful property tax reform by putting a property tax convention on November 2005 ballot.

Driven by same values that guided the Governor in overhauling auto insurance and DMV

Immediate Relief

Middle Class Property Tax Relief

• Nearly two million senior citizens and middle class New Jerseyans will benefit.
• Raises $800 million for hardest hit property taxpayers, with every penny dedicated to property tax relief.
• Doubles direct property tax relief from $670 million to $1.5 billion.
• The maximum Homestead Rebate check for senior citizens will increase, from $775 to $1200 - 458,000 seniors will receive $1200 maximum.
• Direct property tax relief will triple for nearly 1.2 million families, from $250 to a new maximum of $800. Another 190,000 will double average rebates to $500.

Governor McGreevey is asking the Legislature to enact a 2.6 percent millionaire's tax on income over $500,000. Today, a family earning $550,000 receives a $19,000 windfall from the Bush tax cut. After the millionaire's tax is paid, they will keep $18,154, for a total cost of $846. No one will see an increase on income below $500,000 - it will impact only 28,500 taxpayers - less than one percent.

2. Spending Controls

• Freeze government and administrative spending at 2.5 percent.
  - Freeze any increase in state spending on government operations at 2.5 percent or less.
  - Asking Legislature to extend this 2.5 percent freeze to municipalities and school districts.
  - Asking Legislature to place strict limits on school administrative expenses and freeze any increase at 2.5 percent.

• Eliminate holes in our current spending laws.
• Eliminate unnecessary mandates that take time and money away from the classroom.
• Immediately reduce the mandatory school district surplus from six to three percent (providing $80 million in immediate property tax relief).
• Develop a Department of Education pilot program to regionalize administrative services.
• Appoint citizen task force to hold public hearings, gather additional spending reforms, and determine the structure and scope of a Constitutional Convention.
• Hold public hearings.
• Gather additional spending reforms.
• Determine structure and scope of a Constitutional Convention.

3. Long Term Reforms -- property tax convention

• Takes the process out of Trenton and into the hands of voters.
• Invites citizens from every walk of life and officials from every level of government to serve as delegates and participate in the deliberations.
• It must consider spending as well as revenues, must be strictly limited to the issue of property taxes, cannot diminish our commitment to a thorough and efficient education, or become a forum to revisit longstanding constitutional principles.
• Return recommendations in time for 2005 ballot -- taxpayers have waited long enough for long-term solutions.
• By providing immediate relief to middle class families and senior citizens, we can ease the pressure while the convention does its work.